Revenue Recognition

12 Months Ended

Dec. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenues

The Company recognizes revenues to depict the transfer of promised services and products to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services or products. Service revenues include CE and the service components of HE and Rail. Product revenues include portions of HE and Rail.

A summary of the Company's revenues by primary geographical markets as well as by key product and service groups for the years ended December 31, 2024, 2023 and 2022 is as follows:

	Year Ended December 31, 2024
(In thousands)	Harsco Environmental Segment		Clean Earth Segment		Harsco Rail Segment		Consolidated Totals
Primary Geographical Markets (a):
North America	$	292,274	$	939,845	$	173,424	$	1,405,543
Western Europe	425,775		—		84,398		510,173
Latin America (b)	154,684		—		5,578		160,262
Asia-Pacific	117,523		—		27,888		145,411
Middle East and Africa	103,957		—		—		103,957
Eastern Europe	17,299		—		—		17,299
Total Revenues	$	1,111,512	$	939,845	$	291,288	$	2,342,645
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing; and related logistical services	$	967,188	$	—	$	—	$	967,188
Ecoproducts	120,896		—		—		120,896
Environmental systems for aluminum dross and scrap processing	23,428		—		—		23,428
Railway track maintenance equipment	—		—		113,039		113,039
After market parts and services; safety and diagnostic technology	—		—		117,327		117,327
Railway contracting services	—		—		60,922		60,922
Hazardous waste processing solutions	—		778,402		—		778,402
Soil and dredged materials processing and reuse solutions	—		161,443		—		161,443
Total Revenues	$	1,111,512	$	939,845	$	291,288	$	2,342,645

	Year Ended December 31, 2023
(In thousands)	Harsco Environmental Segment		Clean Earth Segment		Harsco Rail Segment		Consolidated Totals
Primary Geographical Markets (a):
North America	$	318,574	$	928,321	$	214,893	$	1,461,788
Western Europe	431,893		—		57,301		489,194
Latin America (b)	170,194		—		2,540		172,734
Asia-Pacific	113,800		—		22,061		135,861
Middle East and Africa	86,867		—		—		86,867
Eastern Europe	19,576		—		—		19,576
Total Revenues	$	1,140,904	$	928,321	$	296,795	$	2,366,020
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing; and related logistical services	$	950,961	$	—	$	—	$	950,961
Ecoproducts	162,291		—		—		162,291
Environmental systems for aluminum dross and scrap processing	27,652		—		—		27,652
Railway track maintenance equipment	—		—		128,155		128,155
After market parts and services; safety and diagnostic technology	—		—		121,039		121,039
Railway contracting services	—		—		47,601		47,601
Hazardous waste processing solutions	—		767,338		—		767,338
Soil and dredged materials processing and reuse solutions	—		160,983		—		160,983
Total Revenues	$	1,140,904	$	928,321	$	296,795	$	2,366,020

	Year Ended December 31, 2022
(In thousands)	Harsco Environmental Segment		Clean Earth Segment		Harsco Rail Segment		Consolidated Totals
Primary Geographical Markets (a):
North America	$	297,544	$	827,826	$	163,998	$	1,289,368
Western Europe	389,713		—		45,507		435,220
Latin America (b)	155,235		—		1,556		156,791
Asia-Pacific	119,433		—		33,855		153,288
Middle East and Africa	79,562		—		—		79,562
Eastern Europe	19,752		—		—		19,752
Total Revenues	$	1,061,239	$	827,826	$	244,916	$	2,133,981
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing; and related logistical services	$	900,426	$	—	$	—	$	900,426
Ecoproducts	145,911		—		—		145,911
Environmental systems for aluminum dross and scrap processing	14,902		—		—		14,902
Railway track maintenance equipment	—		—		100,032		100,032
After market parts and services; safety and diagnostic technology	—		—		118,829		118,829
Railway contracting services	—		—		26,055		26,055
Hazardous waste processing solutions	—		681,804		—		681,804
Soil and dredged materials processing and reuse solutions	—		146,022		—		146,022
Total Revenues	$	1,061,239	$	827,826	$	244,916	$	2,133,981

(a)     Revenues are attributed to individual countries based on the location of the facility generating the revenue.

(b)    Includes Mexico.

The Company may receive payments in advance of earning revenue (advances on contracts), which are included in Other current liabilities and Other liabilities on the Consolidated Balance Sheets. The Company may recognize revenue in advance of being able to contractually invoice the customer (contract assets), which is included in Other current assets on the Consolidated Balance Sheets. Contract assets are transferred to Trade accounts receivable, net, when the right to payment becomes unconditional. Contract assets and advances on contracts are reported as a net position, on a contract-by-contract basis, at the end of each reporting period.

The Company had contract assets totaling $97.2 million and $86.9 million at December 31, 2024 and 2023, respectively. The increase is due principally to additional contract assets recognized in excess of the transfer of contract assets to accounts receivable. The Company had advances on contracts totaling $23.9 million and $38.6 million at December 31, 2024 and 2023, respectively. The decrease is due principally to recognition of revenue on previously received advances on contracts in excess of receipts of new advances on contracts during the period. During the year ended December 31, 2024, the Company recognized approximately $32.7 million of revenue related to amounts previously included in advances on contracts.

The table below represents the expected fulfillment year of Company's fixed, unsatisfied performance obligations, where the expected contract duration exceeds one year, by segment, and exclude any variable fees, fixed fees subject to indexation and any performance obligations expected to be satisfied within one year:

(In thousands)	Harsco Environmental Segment		Harsco Rail Segment
2025	$	17,019	$	51,037
2026	15,367		24,980
2027	12,803		17,955
2028	11,121		5,137
2029	3,132		4,038
Thereafter	3,132		2,676
Total remaining performance obligations	$	62,574	$	105,823

Rail is currently manufacturing highly-engineered equipment under large long-term fixed-price contracts with Network Rail, Deutsche Bahn, and SBB. The Company has previously recognized estimated forward loss provisions related to these contracts of $32.8 million and $44.5 million for the years ended 2023 and 2022 related to these contracts due to several factors, such as material and labor cost inflation, supply chain delays, the bankruptcy of a key vendor and increased engineering efforts. These challenges carried into 2024 and the Company recorded an additional $32.7 million forward loss provision for these contracts for the year ended December 31, 2024, as discussed further below.

For the Network Rail contract, the Company recorded additional loss provisions of $16.1 million in 2024, with $2.8 million recorded in the fourth quarter. This additional loss is primarily related to increased estimated liquidated damages due to delays in the estimated delivery of the machines and increased engineering and manufacturing costs primarily as a result of design changes. For 2023, the Company recorded a net favorable forward loss provision adjustment of$14.4 million. The favorable adjustment was the result of an amendment to the contract with Network Rail which extended the delivery schedule for the machines and reduced the estimate of liquidated damages. Partially offsetting this were higher estimated material, engineering and labor costs due to additional experience gained during the manufacturing process. It is possible there may be additional delays in the project requiring additional costs and liquidated damages to be recorded in the future, which could have a material impact on the Company's results in that period.

For the Deutsche Bahn contract, the Company recorded additional loss provisions of $14.4 million during 2024, with $7.2 million recorded in the fourth quarter, related principally to unexpected supplier price increases, challenges with supplier quality on key components necessitating a switch to a different supplier and increased engineering efforts that exceeded previous estimates. During 2023, additional estimated forward loss provisions of $39.9 million were recorded. The main drivers of the additional forward loss provisions are increased estimated costs for components and engineering, as well as additional penalties recorded due to delivery delays. The increased costs include additional costs for new supply chain partners after a critical European-based supplier that filed for bankruptcy in 2022 had ceased operations during 2023.

For the SBB contract, during the Company recorded net additional loss provisions of $2.2 million during 2024, with $2.7 million recorded in the fourth quarter related principally to increased estimates for assembly, storage and commissioning costs for the remaining vehicles due to project delays. For 2023, the Company recorded an additional estimated forward loss provision of $7.3 million due to increased estimates for material, engineering and commissioning costs.

As of December 31, 2024, the contracts with Network Rail, Deutsche Bahn and SBB are 64%, 48% and 91% complete, respectively, based on costs incurred.

The Company provides assurance type warranties primarily for product sales at Rail. These warranties are typically not priced or negotiated separately (there is no option to separately purchase the warranty) or the warranty does not provide customers with a service in addition to the assurance that the product complies with agreed-upon specifications. Accordingly, such warranties do not represent separate performance obligations.